NAPIER PORT POSTS RECORD RESULT

 

Highlights

Napier Port has today reported another record annual result with Net Profit after Tax up 13.5% to $13.433 million for the 30 September 2014 year. Revenue increased 8% to $67.016 million ($62.097 million). A feature is that 99.97% of total Napier Port revenue is generated from port operations, a consequence of holding minimal non-port (property) assets.

“This was a very pleasing result, achieved from improvements in productivity, control of cost in spite of a 14% increase in FTE’s, and strong growth in most trades. Net operating cash flows also increased to $23.4 million, reflecting the strong underlying earnings of the Port’s core business. The Port’s re-investment programme for the year was $19 million, which included the successful commissioning of two new Gottwald container cranes, “says Napier Port’s Chairman, Jim Scotland.

Mr Scotland says another record year reconfirms Napier’s position as central New Zealand’s leading international sea port, handling over 8% of New Zealand’s total exports by weight. This makes Napier Port a nationally significant infrastructure asset.

“Container volumes gained 6.8% to reach 220,048 TEUs at year end. Full container volumes have grown by 40% over the last five years. Napier Port’s volume is 13% larger than the combined throughput of other three central New Zealand ports, (Wellington, Nelson and Taranaki - measured in total TEUs). We expect our total container volumes to experience another significant lift of approximately 20% this coming year,” he says.

Napier Port is now the fourth largest container terminal in New Zealand, following Auckland, Tauranga and Lyttleton.

2.4 million Tonnes of bulk cargo was handled, representing 3.2% growth for the year. This lift was broadly in line with New Zealand’s GDP rate, despite the slowdown in exports, particularly China’s reduced demand for forestry products. All other New Zealand ports were similarly affected. Total throughput reached a record 4.105 million tonnes.

“Napier Port’s big ship handling capacity was enhanced during 2014. Further dredging to accommodate the increasing number and size of very large vessels was completed, with a 12.4m draft now in operation, “says Napier Port’s Chief Executive, Garth Cowie.

“Napier continues to handle the biggest container vessels operating on New Zealand’s coast, (those with greater than 4000 TEUs capacity), sitting alongside the other major New Zealand container ports (Auckland, Tauranga and Lyttleton), says Mr Cowie.

 

 

Annual Large Container Vessel Calls (> 4000 TEUs)

Auckland

139

Lyttleton

135

Tauranga

95

NAPIER

88

Port Otago

62

Wellington

39

MoT FIGS Report, July 2013-June 2014

He says 15 major container shipping lines each offer 10, year-round, weekly liner services ex-Napier, with more during our peak season. This provides un-matched choice in central New Zealand.

“Another marine record was set earlier in the year with the maiden call of the cruise vessel Celebrity Solstice at 317m length overall and beam of 36.88m. This is the largest vessel of any kind to visit Napier Port as well as being the largest cruise vessel sailing in New Zealand waters.”

“Coping with unprecedented demand presented some challenges in early 2014, notably within the Container Terminal. Transport operators and shippers should however be reassured that a number of improvements have been made to build terminal capacity for the 2015 peak season and beyond,” says Mr Cowie.

“More than $40 million of capital has been spent on development projects over the 2013 and 2014 financial years. The 50 Year Infrastructure Master Plan was reviewed following the annual strategic planning process. Revised growth projections highlight that a significant infrastructure development programme is required at an estimated value of $80 million and $140 million over the next five and 10 years respectively,” he says.

Mr Cowie says planned developments will include a new large vessel berth, further container terminal intensification, extended rail capacity and more off-port, empty container depot expansion. 

“As our cargo reach continues to extend we need to ensure we have capacity to match. Napier Port’s catchment now includes cargo moving from or to Wellington, New Plymouth and the southern Waikato area. A highlight for the year was the establishment of Longburn Intermodal Freight Hub in Palmerston North, a collaborative joint venture involving Napier Port, Ports of Auckland and Manawatu logistics provider Icepak.” he says

Mr Scotland stepped down as Chairman at the Port’s Annual General Meeting today after 10 years in the role. His successor is Napier Port board member and former Deloitte New Zealand partner, Alasdair MacLeod.

“The Port has been well served from a governance point of view over its history. Against that background, Jim Scotland has still managed to stand out as an exemplary Chair. He has left a big hole that will be hard to fill. I will continue to focus on similar issues, and in the same order –safety, people, and growth – while acknowledging the pivotal importance of Napier Port in serving the needs of central New Zealand,” Mr MacLeod said.

ENDS

Contact Garth Cowie, ph (06) 834 4400

Dated: 15/12/2014